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People give value to the currency, if we stop using it it becomes just paper. Maybe that would apply for gold standard backed currency.
by lalos 8y ago
People give value to the currency, if we stop using it it becomes just paper. Maybe that would apply for gold standard backed currency.
- pjmorris 8y agoLook at the correlation between currencies traded around the world and currencies that are trade-able with governments to pay taxes. By volume, most trades are made in currencies created and backed by governments. People can and do make their own, but it's a fraction of economic activity. [0] https://en.wikipedia.org/wiki/Fiat_money https://en.wikipedia.org/wiki/Fiat_money [1] https://en.wikipedia.org/wiki/Modern_Monetary_Theory https://en.wikipedia.org/wiki/Modern_Monetary_Theory